(Bloomberg) -- Brookfield Asset Management said the real estate market is rebounding amid improved economic conditions.
The headwinds in the sector that froze transactions over the past two years are “in the rear view mirror,” Brad Hyler, the head of European real estate, said Tuesday at Brookfield’s investor day in New York. The business is now operating in the “next phase of the cycle” as inflation eased, central banks began cutting interest rates and debt markets opened for strong buyers, he said.
With the hangover from higher rates and capital stress still present — particularly the wall of maturity that will occur over the next three years — Brookfield is seeing a range of opportunities.
“Whether it’s distressed loans and non-performing loans and creditors, whether it’s for sellers because they can’t refinance their debt,” Hyler said.
Brookfield also expects a “robust recovery” across office markets as supply decreases amid record-low construction activity.
If supply remains “muted for an extended period of time” and demand recovers, that combination could translate to a “pretty robust recovery across office markets over the next couple of years,” said Ben Brown, who runs real estate across the Americas.
Mark Carney, the chair of Brookfield Asset Management, is also the chair of Bloomberg Inc.
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